EUR quiet just above 1.16 - Scotiabank

The Euro (EUR) is quietly consolidating in a tight range just above 1.16 and ignoring the release of weaker than expected ZEW sentiment survey figures. The release calendar is limited and the broader market is quiet, offering little in terms of near-term risk in either direction, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

EUR ignores ZEW disappointment

"The EUR's fundamentals remain supportive as the outlook for relative central bank policy favors a continued fade in ECB dovishness and an intensification of expectations for easing from the Fed. Yield spreads have been trending positively for the EUR since late May, and the options market has provided confirmation since late June."

"The RSI remains neutral around the 50 level. The 50 day MA (1.1614) is also providing trend congestion, and it remains upward sloping. The medium term range is bound between support just below 1.14 and resistance in the lower 1.18s. We see a near-term range bound between 1.1550 support and 1.1680 resistance."